Site visit: milk tea shops are blooming everywhere
How hot is milk tea? Meituan app1 released a report on consumption of milk tea during the long holiday in 2020, which was released on October 8. According to the report, the number of milk tea orders on the platform exceeded 1.1 billion in the first four days of the long holiday, which is equivalent to every Chinese drinking a cup of milk tea.
In November 2020, daily economic news reporter saw on the streets of Wuhan that milk tea shops loved by young people were all over the streets. In Wuhan, Jianghan Road, Zhongnan Road, chuhehan street, Xudong Pinmao and other business districts, milk tea shops of various brands, such as Yidian, coco Duke, lujiaoxiang, gongcha, chabaidao, shuyishaoxiancao, naixueyi tea, mixue ice city and other brands of milk tea shops are everywhere.
Boss tension (pseudonym) told reporters that his store was opened in October 2019, and the store is not big, only 20 square meters. Usually, the business hours are from 9:00 a.m. to 12:00 p.m. on weekends, the business hours are usually as high as 167 hours a day. Just opened more than a month business is not good, and then slowly better. When business is good this summer, it can sell 700 cups a day. Im usually the only one, but I need to hire someone when Im too busy in summer.
Business is good, so is the income. According to Zhang Li, when business is good in summer, the store makes more than 230000 yuan a month. Recently, although the business has been poor, the net profit of RMB 12000 a month is no problem.
Homogeneous competition: survival rate is only 20%
Various brands gather, and the current milk tea lake can be called lively. However, in the view of the industry, there are many problems in the rapid development of milk tea industry, including food safety problems, joining chaos and so on.
Among many problems, homogenization is particularly concerned. Daily economic news reporter noted that the current market, most of the milk tea brand categories mainly include fruit tea, milk tea, milk tea, etc. Of course, there are also some milk tea brands trying to innovate, the introduction of seasonal restricted category products. However, once a popular new product appears, it is easy to attract followers.
AI media consulting analysis said that at present, there is a phenomenon of product homogenization in Chinas new tea industry. Due to the low entry threshold of the new tea industry, the required production technology content is low, and the product formula is easy to imitate.
In addition to homogenization, for milk tea shops, the more realistic problem is the dense distribution of stores. The reporter saw that in the vicinity of multiple subway stations and business districts, there are often more than a dozen or more milk tea shops of various brands, and the phenomenon that the same milk tea brand is not far away, that is, two or more different stores are densely distributed. A milk tea shop assistant in Xudong Pinmao believes that one of the important reasons for the poor business in the store recently is that there are three milk tea shops with the same brand nearby, which diverts the flow of customers.
In the battle of milk tea, there are many people who are out of the game. According to the third-party data, there are more than 23000 new registered milk tea enterprises in China in 2019. At the same time, more than 3000 milk tea enterprises have closed down and more than 20000 have abnormal operation.
According to the analysis of prospective industry research institute, although the number of milk tea shops has increased rapidly in recent years, the number of closed shops has also continued to rise. According to the industry statistics, the survival probability of milk tea shops is about 20%, that is, most of the newly opened milk tea stores are in the state of operating loss. How to balance space benefit, scale benefit and economic benefit is still the main problem faced by tea industry.
For the current low survival rate of milk tea shops, Xu Xiongjun, a strategic positioning expert and founder of Jiude positioning consulting company, said in an interview with the reporter of daily economic news that this is not surprising. The survival rate of offline stores in many industries is only about 10% - 20%. This is because the competition of commercial formats, including capital, manpower and business model, is becoming more and more fierce.
On November 29, 2020, on the weekend, the door of a Lujiao Lane store located on Zhongnan road was closed. Through the glass door, you can see that the chairs in the store were upside down on the table top, and two staff members were sorting out the items in the store. When the reporter came to the door as a customer, one of the staff said that the store had closed down, the back is not open..
Future trend: combination of online and offline
Although facing various problems, milk tea industry still attracted all kinds of capital into the Bureau. In July 2020, the first Wahaha milk tea direct store was officially opened in Guangzhou. Wahaha Group also put forward the goal of distributing 10000 tea shops nationwide in the next 10 years.
Pharmaceutical enterprises also cross the milk tea industry. This summer, Donge donkey hide gelatin (dongejiao milk tea cup) has been launched. Donge Ejiao said to the outside world that the company is accelerating the digital transformation and will launch convenient and ready to eat donkey hide gelatin products to meet consumer demand.
Milk tea enterprises have also been favored by capital. In March 2018, the value of Naixue tea in financing reached 6 billion yuan; in March 2020, Xicha was invested again, and it was reported that Xichas valuation might exceed 16 billion yuan after investment, but Xicha did not respond to this at that time.
According to the analysis of prospective industry research institute, after more than ten years of development, the two major market segments of solid (powdery) milk tea and liquid milk tea have turned to stock market, and the market size is about 4 billion yuan. With the rise of Internet social networking and online takeout, the scale of the new milk tea market continued to grow. Among them, milk tea + other tea mode of 4.0 new milk tea is an explosive growth. At present, the number of milk tea shops in China has exceeded 600000.
Zhu danpeng, an analyst of Chinas food industry, said in an interview with the daily economic news that the whole milk tea industry in China now belongs to the period of transformation from growth to maturity. Under this kind of node, some leading enterprises, such as Xicha and naixueyi tea, have been born. In addition, there are regional brands such as tea Yan Yue se.
Xu Xiongjun also believes that milk tea industry is becoming more and more healthy is the trend of the future. He said that compared with the traditional solid milk tea and liquid milk tea, new tea drinks such as Xi Cha and Naixue tea are supported by offline physical stores, with more fresh and healthy ingredients and social attributes. On the whole, through the combination of online and offline, the new tea drinks represented by Xi Cha and Naixue tea represent a new way of communication and consumption trend. And capital saw this consumption trend and joined the camp.
Industry breakthrough: differentiated competition is feasible
The industry has entered the 4.0 era, and some milk tea enterprises have taken the first mover advantage. Do other milk tea enterprises still have opportunities? This year, as the first tea maker in China, instant tea is not good. In the first three quarters, Xiangpiao achieved a revenue of 1.893 billion yuan, a year-on-year decrease of 20.47%; the net profit attributable to shareholders of listed companies was 44.49 million yuan, a year-on-year decrease of 66.35%.
In Zhu danpengs view, the new Chinese style milk tea industry still has some room for growth, and the industry structure is still in fission, but the industry brand pattern will basically enter the solidification stage in two years. In addition, the elimination rate of milk tea industry will be very high during the transition period from growth period to maturity stage. For milk tea enterprises, the future will mainly be the competition of quality, brand tonality, scene, service system and customer stickiness.
Xu Xiongjun also believes that at present, new tea enterprises such as Xicha and naixueyi tea have occupied the leading position, and capital has been involved, so there are not many opportunities left for other brands in the future. However, the scale of Chinas milk tea market is huge. Although Xicha and naixueyi tea have developed rapidly in the past two years, their market share is not very high. In the future, other milk tea brands still have the opportunity to catch up.
Xu Xiongjun suggested that if other milk tea enterprises want to break through, they should first have a precise positioning, including a brand name that is easy to spread; second, it should quickly introduce capital, such as Xicha and Naixue tea, which have capital intervention, constantly expand the scale and introduce advanced management mode to achieve a virtuous circle.
For the traditional solid (powder) milk tea and liquid milk tea brands, Xu Xiongjun believes that under the background of healthy milk tea industry, if these enterprises want to make a breakthrough, they need to develop a new generation of safer and healthy food ingredients. In addition, the traditional solid and liquid milk tea enterprises can also transform in this direction by learning from the new retail mode of online and offline integration of new existing tea production line. In fact, traditional milk tea enterprises are also trying to transform. For example, Xiangpiao has entered the liquid milk tea market segment; in addition, under the situation of 4.0 new tea prevailing, Xiangpiaos MECO brand also launched fruit juice tea. Huachuang securities in April of this years research report analysis that in the future of new tea break, differentiated competition is the most likely to succeed in the competition strategy. AI media consulting believes that at present, the new tea stores in Chinas first and second tier cities are densely distributed, while those in the third and fourth tier cities are few, small in scale and inefficient in operation. As the new tea market in the first and second tier cities has been basically saturated, all brands need to turn to the sinking market to seek new growth points. Source: Daily Economic News Author: Chen Qing, editor in charge: Wang Xiaowu_ NF
In fact, traditional milk tea enterprises are also trying to transform. For example, Xiangpiao has entered the liquid milk tea market segment; in addition, under the situation of 4.0 new tea prevailing, Xiangpiaos MECO brand also launched fruit juice tea.
Huachuang securities in April of this years research report analysis that in the future of new tea break, differentiated competition is the most likely to succeed in the competition strategy.
AI media consulting believes that at present, the new tea stores in Chinas first and second tier cities are densely distributed, while those in the third and fourth tier cities are few, small in scale and inefficient in operation. As the new tea market in the first and second tier cities has been basically saturated, all brands need to turn to the sinking market to seek new growth points.